Background

Mining projects can be categorized by the way that the ore is recovered.

Surface such as surface mining, open pit mining, strip mining, mountain removel mining, quarrying etc

Sub surface such as hard or soft rock mining, drift, shaft or slope mining, etc

Other such as boreho;le mining, deep cut, deepsea mining etc

Such projects:

• Produce extracted mineral may consist a single product or it may be an ore with a variety of different products all worth extracting. For instance, bauxite is used solely for the production of aluminium but orthomagmatic sulphide deposits may contain Platinum, Palladium, Rhodium, Iridium, Ruthenium and Osmium;
• Produce mineral which typically goes through a beneficiation process at the mine to produce a more valuable concentrate and tailings. The concentrate will be used s feedstock to a metallurgical plant located on site or remotely (and therefore not part of the project);
• are subject to royalty payments as well as other straightforward taxation calculations;
• Produce revenues which may decline with time as the richest seams are exhausted;
• Incur costs which increase with time as the distance for transporting the mineral increases;
• Require clean-up costs to be accrued to restore sites once mining is over;

How Promoter handles Mining Projects

Promoter currently produces a relatively rudimentary model.

Typical Project Cash Flows

Note the declining revenues and increasing costs.